With rice prices I recommend buying 50 pound bags and storing them as a hedge against rising commodities prices Like folks do with those American Eagles etc..
Would love to hear some opinions on this- Current multiples- trading at .55 Market cap is 40 mil Last year they earned 20 million and the year before 13.5 So far for the first six months, they have earned 6.4 million, however, the 3rd and 4th quarter have historically been their highest earning q's due to the seasonality of the rice cycle (grow, harvest, store, sell). So, all are free to make some assumptions on the 3rd and 4th q- that is what i am interested in hearing. What I have come across is that it seems this company has moved away from being a producer more towards the distributing side of the business. A potential concern which did not materialize in this june Q was that rice prices are well under where they were trading last year, however, net income is up substantially- so i am factoring that they receive a margin on the spread between price paid and sold- and it isn't as reliant upon the market price of rice as i had initially feared/thought. So, even halving the earnings of the second half Q from last year, and getting a round number of 10 mil net, that would bring us up to 16 roughly- and that is a P/E of 2.5...... and as far as what I am able to tell, that is being conservative. And almost as lucrative is the balance sheet- with exception of large A/R- check it out, would love to hear other opinions and bashings of this company. NYCDT